Want to Leave Money to Your Descendants But Still Keep Control? Choose Your Trustee Wisely

 

Want to Leave Money to Your Descendants But Still Keep Control?

Choose Your Trustee Wisely

Don't Make the Family Slacker Distribute Money to Your Descendants. Your Choice of Trustee Can Influence How Your Heirs Handle the Wealth You Leave Behind.

When you spend a lifetime building wealth, it's natural to want your descendants to benefit from it. But what many people don’t realize is that how you pass it on matters just as much as how much you leave behind. A key decision that can make or break your legacy? Choosing the right trustee.

A trustee is the person or institution you appoint to manage and distribute the assets in a trust according to your instructions. They’re the one making judgment calls after you're gone — paying out money for education, buying a first home, or withholding funds if an heir is making poor life choices.

It’s tempting to appoint a family member, especially a child or sibling. But not everyone is equipped to handle the responsibility. Appoint the family slacker — the one who can’t keep a job, who borrows money but forgets to pay it back — and you risk sowing resentment and chaos among your heirs. Worse, your assets could be mismanaged or frittered away.

What Makes a Good Trustee?

A good trustee should have three qualities:

• Financial Competence: They don’t need to be a Wall Street wizard, but they should understand basic investment principles, accounting, and tax obligations.

• Impartiality: They must treat all beneficiaries fairly, even when emotions run high.

• Trustworthiness: Above all, you need someone who will respect your wishes and act in the best interests of your heirs — not themselves.

Family members can work well as trustees if they meet these criteria. But if there’s any doubt, it’s often better to appoint a professional trustee, like a bank trust department, law firm, or licensed fiduciary. Yes, they charge fees — but they also bring experience, neutrality, and structure that can protect your legacy for generations.

Influence from Beyond the Grave

The right trustee doesn't just safeguard money. They influence how your descendants experience wealth. A responsible trustee can help younger generations learn financial discipline, fund educational goals, encourage entrepreneurship, and discourage reckless spending.

You can even build specific instructions into the trust document — milestones like graduating from college, maintaining a job, or completing rehab if needed — that the trustee will enforce. A bad trustee might ignore these conditions; a good one will honor them and keep your wishes alive.

How to Choose (and Prepare) Your Trustee

When choosing a trustee:

• Be honest about your family’s strengths and weaknesses.

• Discuss the role in advance with your chosen trustee to ensure they’re willing and able to serve.

• Provide clear guidance in your trust documents to make their job easier.

• Consider naming a backup trustee in case your first choice is unable or unwilling to serve when the time comes.

And remember: you can always combine a family member and a professional trustee to balance personal knowledge with professional expertise.

Conclusion

If you want your descendants to thrive — and not just survive — with the wealth you leave them, take your trustee selection seriously. Don't hand over the keys to your legacy to someone who can’t manage their own affairs. Choose wisely, and you’ll continue to guide and support your family long after you're gone.